Pioneer to spend $575 million in the Eagle Ford

The Irving, Texas-based company recently reported its fourth quarter earnings and said it expects Eagle Ford production to jump 36 percent to 50 percent over 2012.

Pioneer this year expects to produce between 38,000 barrels of oil equivalent per day and 42,000 barrels of oil equivalent per day. The barrels of oil equivalent number includes the mix of crude oil, dry natural gas and natural gas liquids that a well produces.

The company’s capital program for 2013 is $3 billion, including $575 million in the Eagle Ford.

Pioneer is increasing the length of its well’s horizontal reaches this year in the Eagle Ford. They’ll grow from an average of 5,700 feet to 6,200 feet (which will cost about $500,000 more per well).

Most of Pioneers acreage is now “held by production.” That means its mineral leases are secure and it can start drilling multiple wells on each site instead of single wells – something companies do in the race to meet lease obligations, which generally require production within three years.

So-called ”pad drilling” saves $600,000 to $700,000 per well and will allow the company to run 10 rigs this year compared to 12 rigs last year.